Gold rally continues amid global uncertainties

Gold's so called reputation as a 'flight to safety' continued amid global economic and financial uncertainty. Indian gold prices which are directly linked to international prices stayed in tandem.

Gold for immediate delivery was seen trading at Rs 30,220 per 10 grams up by Rs 220.

At the Multi Commodity Exchange(MCX), Gold for delivery in far-month October rose high to Rs 30,550 per 10 grams at 2.20 pm IST. Domestic bullion prices rose with gold of 99.9 and 99.5% purity was seen at Rs 30,400 and Rs 30,200 per 10 grams, respectively. Spot gold on MCX was seen trading at Rs 30,038.

Traders are expecting monetary stimulus measures from the European Central Bank and Federal Reserve which will boost the demand for gold further. Weak dollar also boosted gold sentiment.

Global investors are optimistic about the performance of gold as global worries continues as they consider it to be a hedge against the global uncertainties.